Crypto Platform Kraken Pays $30 Million and Ceases Staking Services to Settle SEC Charges

By Drew Hinkes, Carly Howard, and Judie Rinearson

The Securities and Exchange Commission (SEC) announced a settlement with the digital assets/cryptocurrency exchange Kraken whereby Kraken agreed to cease offering or selling securities through its crypto asset staking services, and agreed to pay a penalty of $30 million (comprising disgorgement, prejudgment interest, and civil penalties).

The announcement (see has garnered some criticism, including comments from SEC Commissioner Hester Peirce, that the staking ban was “not a fair way of regulating”. (see

This most recent SEC action has raised numerous questions about other crypto staking programs, and the impact on the crypto industry in general.  While the K&L Gates Digital Assets team prepares an in-depth assessment of this latest action, feel free to contact us should you have any questions. 

Drew Hinkes –

Carly Howard –

Rich Kerr –

Jeremy McLaughlin –

Judie Rinearson –

Eden Rohrer – 

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